Meritain Health Acquires CBSA PERFORMAX Acquisition Creates Nation's Largest Privately Held Manager of Health

Benefits Plans



    AMHERST, N.Y., Dec. 5 /PRNewswire/ -- Meritain Health, Inc., a leading
 provider of health plan management services and a division of health care
 services company Prodigy Health Group, has announced the acquisition of
 CBSA PERFORMAX. The acquisition doubles the size of Meritain Health,
 creating the nation's largest privately held manager of health benefits
 plans. Financial terms of the transaction were not disclosed.
     The combination of Meritain Health and CBSA PERFORMAX brings together
 two companies that are passionately dedicated to helping employers control
 the long-term cost of health care while providing superior customer service
 and flexibility. The combined company will operate under the Meritain
 Health name and maintain CBSA PERFORMAX's presence in Baltimore and
 Minneapolis, as well as its regional sales and service offices. In total,
 the combined company has offices throughout the country, over 1,350
 employees, 1,400 clients and over a million members nationally.
     The announcement reflects the considerable consolidation underway in
 the healthcare services industry. It follows Meritain Health's August 2006
 acquisition of Weyco, Inc., a third party medical benefits administrator,
 as well as the merger between Corporate Benefit Services of America (CBSA)
 and PERFORMAX, also in August 2006.
     Elliot Cooperstone, CEO of Prodigy Health, said, "This acquisition is
 an important step as Meritain Health pursues its continuing strategy of
 controlled expansion through acquisition and the delivery of innovative
 products and services. Meritain Health and CBSA PERFORMAX each have a
 terrific history of providing intimate, local service while building
 capabilities on a national scale to ensure our clients have access to the
 most compelling products and services available. Together we will build on
 that legacy."
     Jacob L. Canova, President and CEO of CBSA PERFORMAX, will become
 Chairman and CEO of Meritain Health. Mr. Canova said, "We are pleased to
 bring together the very talented management teams, employees, and
 value-added products and services of Meritain Health and CBSA PERFORMAX.
 Both of our companies are completely committed to helping our employees
 grow and succeed, and together we will continue to work tirelessly to
 reward our clients for their confidence in us."
     Meritain Health and CBSA PERFORMAX have had an excellent relationship
 for the past eight years, as Meritain Health has provided claims services
 for PERFORMAX clients. The combination strengthens both companies'
 objective of offering mid-size employers comprehensive, fully integrated
 health benefit services, including the design of customized, flexible plans
 that incorporate advanced cost management strategies.
     Mr. Cooperstone added, "Health care is a local issue and to be
 successful in today's rapidly evolving health care environment, we need to
 be where our clients are. That's why we're committed to delivering our
 services via regional processing centers and locating our sales and service
 offices close to our clients. The combination of Meritain Health and CBSA
 PERFORMAX will benefit our clients by creating one of the most extensive
 footprints in our industry."
     Meritain Health also announced that Ian Gordon has been named President
 and Chief Operations Officer, and Steve Adamson has joined the company as
 Senior Vice President and General Manager of the Minneapolis office. Mr.
 Gordon was formerly Chief Operations Officer of Concentra Network Services,
 and Mr. Adamson most recently was Vice President-Enterprise Business
 Operations at USAA.
     Goldman, Sachs & Co. arranged financing for the transaction.
     About Meritain Health
     Meritain Health is the country's largest independent provider of
 services for self-funded health plans. Meritain Health serves over 1,400
 self-funded clients and over a million members nationally. The company
 provides plan administration, innovative wellness, medical management,
 disease management, network management, and cost management services.
 Meritain Health is also a pioneer and now the leading independent provider
 of Consumer Directed Health Plans. Meritain Health employs over 1,350
 people, with headquarters in Amherst, NY and regional offices in 28 cities
 across the country. http://www.meritain.com
     About Prodigy Health Group
     Prodigy Health Group is a health services holding company. Prodigy
 Health Group operating companies provide benefits management, total health
 management, provider network services and insurance services to self-funded
 employers, managed care companies and insurers. Prodigy Health companies
 serve over 3.5 million members across all industry sectors and Prodigy
 Health Group is continuing to pursue an aggressive growth strategy through
 synergistic health services acquisitions and organic growth.
 http://www.prodigyhealthgroup.com
 
 

SOURCE Meritain Health, Inc.

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